New Delhi, April 15 -- Starting in September, Union minister of housing and urban affairs Manohar Lal Khattar on Wednesday said that 30% of central funds will be released to cities for projects under the Rs.1 lakh crore urban challenge fund (UCF).

The scheme announced in last year's budget focuses on market-based finance, with a total investment of Rs.4 lakh crore in urban sector from FY 2025-26 to FY 2030-31, extendable by three years. While the Centre and state can fund 25% of the project cost, the remaining amount must be financed through bonds, loans, or private participation.

According to the guidelines released on Wednesday, private participation can also include community-led private investment mobilisation. Ward-level foundation...